"Second quarter results were consistent with our expectations," commented
Allen Carlson, Sun's president and CEO. "Despite the 53% drop in sales for
the first half of the year, we are operating at breakeven and generating
strong cash flow. Our order rates remain stable and we believe we have seen
the bottom of the cycle. We are continuing to invest for the future while
maintaining our workforce readiness in preparation for the upturn."

"In June, Sun initiated rolling furloughs for the production workforce and
a 3% salary reduction for non-production personnel," Carlson offered. "The
furloughs allow us to balance our capacity with current business levels
without compromising our ability to respond when demand increases. While we
expect to see some cost benefit in the third quarter, keeping our workforce
intact is our primary goal. Under the furlough model, it is relatively
simple to return to normal work schedules as demand recovers."

"Customers have continued to expedite orders throughout the second
quarter," Carlson continued. "Sun's North American distributor inventory
decreased 18% from the beginning of the year as distributors and customers
remain reluctant to add inventory. However, the expedite activity and
decreasing distributor inventory leads us to believe that we are getting
closer to seeing actual customer demand levels."

"Thanks to our strong financial position and ability to generate cash, we
have continued to invest in our facilities and people, while, at the same
time, making Sun an attractive investment for shareholders. In June, we
purchased land that now gives us 27 contiguous acres which includes one of
our existing facilities, and we installed a new heat treat furnace that
enhances capacity and improves the quality of our products. Since the end
of the first quarter, more than 100 employees have been engaged in
manufacturing training initiatives offered by the state of Florida. Sun is
not sitting idle for the recession to be over. We are investing and
preparing for the next cycle."

Concluding, Carlson said, "The actions we have taken and our strong
financial position provides us flexibility to manage the business
regardless of future demand. However, we are very encouraged by the strong
uptick in the Purchasing Managers Index that came out earlier today. This
index has historically been a leading indicator and has shown seven months
of upward momentum. The portion of the index that represents production
has been above 50, indicating a growth phase, for the last two months.
These external indices coupled with stable internal order rates and
decreased distributor inventory, leads us to believe the economy is in the
early stages of recovery. When it does, Sun is ideally positioned to
respond to customer demand with superior product and service performance.
And as we have consistently stated, market share gains are made in the
beginning phases of the business cycle."

Outlook

Third quarter 2009 revenues are expected to be in the range of $22 to $23
million, 50% below the third quarter of 2008. Earnings are expected to be
around breakeven compared to $0.40 in the same period a year ago.

If an individual wishes to ask questions directly during the webcast, the
conference call may be accessed by dialing 1-888-401-4685. Questions also
may be submitted to the Company via email at investor@sunhydraulics.com.
Sun management will then answer these and other questions during the
Company's webcast. A copy of this earnings release is posted on the
Investor Relations page of our website under "Press Releases."

Sun Hydraulics Corporation is a leading designer and manufacturer of high
performance screw-in hydraulic cartridge valves and manifolds for worldwide
industrial and mobile markets. For more information about Sun, please
visit our website at www.sunhydraulics.com.

FORWARD-LOOKING INFORMATION

Certain oral statements made by management from time to time and certain
statements contained herein that are not historical facts are
"forward-looking statements" within the meaning of Section 21E of the
Securities Exchange Act of 1934 and, because such statements involve risks
and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Forward-looking
statements, including those in Management's Discussion and Analysis of
Financial Condition and Results of Operations are statements regarding the
intent, belief or current expectations, estimates or projections of the
Company, its Directors or its Officers about the Company and the industry
in which it operates, and assumptions made by management, and include among
other items, (i) the Company's strategies regarding growth, including its
intention to develop new products; (ii) the Company's financing plans;
(iii) trends affecting the Company's financial condition or results of
operations; (iv) the Company's ability to continue to control costs and to
meet its liquidity and other financing needs; (v) the declaration and
payment of dividends; and (vi) the Company's ability to respond to changes
in customer demand domestically and internationally, including as a result
of standardization. Although the Company believes that its expectations
are based on reasonable assumptions, it can give no assurance that the
anticipated results will occur.

Important factors that could cause the actual results to differ materially
from those in the forward-looking statements include, among other items,
(i) the economic cyclicality of the capital goods industry in general and
the hydraulic valve and manifold industry in particular, which directly
affect customer orders, lead times and sales volume; (ii) conditions in the
capital markets, including the interest rate environment and the
availability of capital; (iii) changes in the competitive marketplace that
could affect the Company's revenue and/or cost bases, such as increased
competition, lack of qualified engineering, marketing, management or other
personnel, and increased labor and raw materials costs; (iv) changes in
technology or customer requirements, such as standardization of the cavity
into which screw-in cartridge valves must fit, which could render the
Company's products or technologies noncompetitive or obsolete; (v) new
product introductions, product sales mix and the geographic mix of sales
nationally and internationally; and (vi) changes relating to the Company's
international sales, including changes in regulatory requirements or
tariffs, trade or currency restrictions, fluctuations in exchange rates,
and tax and collection issues. Further information relating to factors
that could cause actual results to differ from those anticipated is
included but not limited to information under the heading "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
in the Company's Form 10-Q for the quarter ended June 27, 2009, and under
the heading "Business" and particularly under the subheading, "Business
Risk Factors" in the Company's Form 10-K for the year ended December 27,
2008. The Company disclaims any intention or obligation to update or
revise forward-looking statements, whether as a result of new information,
future events or otherwise.

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